Hands up who saw that coming? No, me neither. After a drab week of price action and underlying negative tone to the market, Friday’s price action came as a surprise to all and sundry. Just waking up to a sea of green with most major coins higher by 2-3%, led rather surprisingly by Litecoin (LTC) which was up over 12%, would have been a welcome sight. Litecoin has been working on the implementation of both Confidential Transactions and Mimblewimble transactions, both of which are privacy-based features enabling users to send and receive payments without revealing their identities.
[Ed note: Investing in cryptocoins or tokens is highly speculative and the market is largely unregulated. Anyone considering it should be prepared to lose their entire investment.]
Because less data is used, the capacity of the Litecoin network is increased while augmenting client privacy. Clearly, these advancements are now being reflected in the price. But that’s only half of Friday’s story. One headline on the new SolidX / VanEck ETF application had the market surging even higher. Apparently an extra ‘hardcore’ 30 pages have been added based on regulatory feedback and input from other market participants. Bitcoin (BTC) jumps $300 up to $3,710. Ethereum (ETH) powers through the pivot area around $112.35 up to $121.65. LTC having already rallied from $33 to $38.05 extends those gains to touch $47. As the weekend comes to an end, we are seeing a slight drift back from the market’s best levels, but regardless this could prove to be a pivotal moment for the crypto market in 2019.
For these late week moves, we do at least have a fundamental catalyst. From a technical perspective the 200-week MA for BTC, which I mentioned in Thursday’s rundown, has held perfectly. ETH has seen a real acceleration through the key 112.35 level already mentioned. And Litecoin has us looking at levels not seen since early November, with a line of old support now potentially acting as near-term resistance. Looking at the daily chart of LTC below, we can see that the $47.00 level was a previous low, acted as support and then saw a real acceleration lower when it finally broke. Sunday’s extended rally high? $47.00. Old support becomes the ‘new’ resistance.